Russian inflation of 6.7% in October reveals only one symptom of deeper economic problems over Putin's war in Ukraine, economists say

Russia's annual inflation rate accelerated to 6.7% in October, failing to meet the officially target of 4%, the country's federal statistics agency said Friday, as a weak currency and surging military spending push prices higher across the economy.

Moscow will raise its defense spending by 70% next year to a post-Soviet record of 6% of GDP, according to an annual budget approved by lawmakers.

Meanwhile record low unemployment after hundreds of thousands of workers have been called up to the army, fled to avoid being drafted or been redirected to work in arms factories, has created labor shortages across the economy.

Last month, Russia reimposed some currency controls after the ruble fell below the symbolic level of 100 against the U.S. dollar over the summer. It has since recovered to around 92.